Derivatives Markets

Contents\r......Page 4
Foreward\r......Page 10
Preface\r......Page 11
1 Introduction to Derivatives......Page 16
Part I Insurance, Hedging, and Simple Strategies......Page 25
\r2 An Introduction to Forwards and Options......Page 26
3 Insurance, Collars, and Other Strategies......Page 45
4 Introduction to Risk Management......Page 61
Part II Forwards, Futures, and Swaps......Page 78
5 Financial Forwards and Futures......Page 79
6 Commodity Forwards and Futures......Page 100
7 Interest Rates Forwards and Futures......Page 118
8 Swaps......Page 139
\rPart III Options......Page 155
\r9 Parity and Other Option Relationships......Page 156
10 Binomial Option Pricing: I......Page 172
11 Binomial Option Pricing: II......Page 187
12 The Black-Scholes Formula......Page 203
13 Market-Making and Delta-Hedging......Page 222
14 Exotic Options: I......Page 237
Part IV Financial Engineering and Applications......Page 251
\r15 Financial Engineering and Security Design......Page 252
16 Corporate Applications......Page 267
17 Real Options......Page 289
\rPart V Advanced Pricing Theory......Page 308
18 The Lognormal Distribution......Page 309
19 Monte Carlo Valuation......Page 324
20 Brownian Motion and Ito s Lemma......Page 340
21 The Black-Scholes Equation......Page 355
22 Exotic Options: II......Page 367
23 Volatility......Page 386
24 Interest Rate Models......Page 405
25 Value at\r Risk......Page 422
26\r Credit Risk......Page 436
Part VI Appendixes\r......Page 451
Appendix A The Greek Alphabet\r......Page 452
Appendix B Continuous Compounding\r......Page 453
Appendix C Jensen\'s Inequality\r......Page 456
Appendix D An introduction to visual basic for application\r......Page 458
Glossary\r......Page 469
Bibliography\r......Page 476
Index\r......Page 483